According to the first estimates obtained by Spanish private capital trade body ASCRI, the volume of investment in Spain during H1 2019 reached €4bn – a new record in the first six months.
This record value continues to be driven by megadeals – 9 megadeals in just 8 companies, all of them completed by international funds, accounted for c.€3bn, or c.80% of total volume invested. These included CPPIB and Bridgepoint in Dorna Sports, Permira in Laureate International Universities, ICG in Grupo Konecta, EQT Partners in Igenomix, KKR in Telepizza, Carlyle in Jeanología, Platinum in Iberconsa and PAI Partners in Areas.
The mid-market has shown a great dynamism, with a total volume of €818m in 31 investments, most of them led by local private equity investors. Services, Hospitality and Industrials continue to be the main sectors of interest.
In terms of fund raising, capital raised by domestic private capital funds reached €625m, c.25% less than in the same period last year. Rather than a negative trend, this can be explained by the intense fund-raising activity of the last 4 years, where most of the mid-market private equities raised new funds.
Based on H1 data, the macro-economic instability and internal political situation seem to have had a relatively little impact on the overall private equity and shows that Spain continues to be an attractive market for investors.
However, clear signs of economic slowdown during Q3 and Q4, which particularly affects the mid-market, and possibly fewer mega deals in the pipeline, could indicate a soft landing for FY2019 after 5 years of continuous growth.
Consumer, Leisure and Retail:
- Corpfin Capital has acquired an undisclosed majority stake in Sancien, a Spain-based manufacturer of and distributor of disposable, reusable and protective gloves, for an undisclosed consideration
- GPF Capital has acquired Quimi Romar, the Spain-based manufacturer and distributor of body and hair care products, from Realza Capital, for an undisclosed consideration
- ProA Capital has agreed to acquire a majority stake in Comercial Gallo, the Spanish-based manufacturer of pasta and pasta related products, in a transaction valuing the company at an enterprise value of approximately €200m
- ProA Capital has acquired an undisclosed majority stake in, IMPLANT PROTESIS DENTAL, a Spain-based manufacturer and distributor of titanium parts used in dental implants, for an undisclosed consideration
Industrial Products & Services:
- Spain-based Arta Capital and Kohlberg Kravis Roberts have agreed to acquire an undisclosed stake in Groupo Alic FR Mobilario, the designer and manufacturer of home furnishing products, for an undisclosed consideration
- Nazca Capital has acquired a majority stake in Cinelux, a Spain-based provider of lighting for entertainment and events, for an undisclosed consideration
- Edizone has sold a 5% stake in Cellnex Telecom, the Spanish-based infrastructure operator for wireless telecommunication, to GIC and Abu Dhabi Investment Authority, in a deal valuing the company at €501m
Spain deals by sector